HOW TO DEAL WITH NAVIENT STUDENT LOAN SERVICING PROBLEMS AND LAWSUITS
Who Is Navient Student Loan Servicing? To fully understand the role of Navient, we have to first understand the role of Sallie Mae. Navient is a student loan servicer that was formed after the 2014 Sallie Mae split. In 1972, Sallie Mae was established as a government-sponsored enterprise (GSE), and was later privatized in 2004, when Congress terminated Sallie Mae’s federal charter. Sallie Mae was a loan servicer for two federal student loan programs: the Direct Loan Program and the Federal Family Education Loan Program. In 2014, Sallie Mae was divided in two parts: the consumer banking business, which is known as Sallie Mae, and the student loan servicing operations, which became Navient. Now, Sallie Mae claims that Navient is responsible for “all costs, expenses, losses and remediation” arising from the state lawsuits. However, Navient still stands to benefit, having inherited 95 percent of Sallie Mae’s assets, including servicing rights to $300 billion in student loans.